Lower Student Loan Payments

Written by Nicole Madison

Students often find it extremely challenging to manage student loan payments after graduation. Loan repayment can take a hefty chunk out of their paychecks each month, leaving them very little money for living expenses. Loan consolidation is a prime way to lower student loan payments and free up much needed funds for life's necessities.

Consolidate to Lower Student Loan Payments

Consolidating allows you, the borrower, to take all your eligible loans and combine them into one loan. This makes life easier by allowing you to write one check, to one lender per month and pay less out of your pocket for your loans monthly. In addition to making your check writing easier, consolidation can lower your student loan payments by up to 60%.

Students can take advantage of lower interest rates to help them lower student loan payments. By consolidating their student loans at times when interest rates are low, students can both lower their monthly payments and reduce the total cost of their loans.Some consolidation loan programs offer additional borrower benefits that can work to lower student loan payments even more. Ask your lender if they offer any borrower benefits.

Another way to lower student loan payments through consolidation is to stretch out your loan repayment period. By breaking down the total loan amount into a larger number of payments, each monthly payment is reduced. It is important to remember that lengthening the repayment period of the loan may cause the total cost of the loan to increase because you will be paying interest on your consolidation loan for a longer amount of time. Whether or not you save on the total cost of your loan depends on interest rates when you consolidate as well as how long you take to pay off the loan.